What does the 2018 Federal Budget mean for Australian small business?Rebecca Bendikov
The Australian Federal Government have just released their budget for 2018, and although it was largely focused on individual tax rates, spending and aged incentives there is plenty of good news for small businesses too. Keep reading to find out how the budget might impact your business.
The $20,000 instant asset write-off is back
To the relief of many, the instant asset write-off has been extended for a further 12 months, meaning businesses can continue to claim a deduction for goods costing up to $20,000 until 30 June 2019.
At Cashflow Manager we are excited about this one as many of our customers will be able to receive the benefit of this initiative.
Research grants and funding boosts announced
Crucial and high-growth industry have the support of the government with a number of grants and extra funding being announced.
- $1.9 billion over 12 years in scientific research infrastructure
- $20 million in SME Export Hubs
- $200 billion investment in defence over the next 10 years, as well as a new grants program to help SMEs in the defence sector buy essential equipment.
- Additional funding for the fintech sector
- Funding to support farmers and primary producers
Simpler GST reporting is a win
The Government has streamlined GST reporting for around 2.7 million small businesses by reducing the number of BAS GST questions to only three and scrapping the requirement for a 20 question worksheet. This saves small businesses time and money so owners can get back to running their business. When fully implemented, Simpler BAS is estimated to save each small business an average of $590 per year.
No corporate tax rate cuts
The government pulled plans to cut the company tax rate for larger firms. No new cuts to the corporate tax rate will be made, but the asset write off for small business remains on track.
The new ATO tax rates for 2018-2019 (subject to legislation)
The 2018 Budget announced a number of proposed adjustments to the personal tax rates taking effect from 1 July.
It’s important to note that as an employer you’ll need to be using current tax tables to ensure your employees are being paid at the correct tax rate.
Cashflow Manager do all the work for you by ensuring we are always on top of government changes, but it is vitally important that you update your program as soon as you are notified that the EOFY changes are available.
Keep an eye on your email inbox for more news. If you have changed your contact details recently, please let us know by phoning 1300 88 78 68.
All current subscribers will have access to their EOFY update before 1 July 2018.